BiggerPockets Real Estate Podcast: Episode Summary

Title: Landlords, What Are Your Wildest Tenant Stories?
Release Date: November 20, 2024
Host: Dave Meyer
Guests: Henry Washington, Samantha

Introduction to Tenant Tales

In this engaging episode of the BiggerPockets Real Estate Podcast, host Dave Meyer sits down with guests Henry Washington and Samantha to delve into the most outrageous, challenging, and heartwarming tenant stories from their experiences as landlords. The conversation highlights the unpredictable nature of real estate investing and the importance of effective tenant screening and management.

Crazy Tenant Encounters

Dave’s Unexpected House Hacking Horror [00:00 - 05:04]

Dave kicks off the discussion with a harrowing account of his house hacking experience five years into his real estate career. Operating out of a modest one-bedroom apartment, Dave discovered an unexpected guest when he heard noises and found a woman asleep on his couch.

Dave [02:13]: "It is very not cool."

Despite thinking she might be his tenant, C.J., Dave realized something was amiss when he noticed signs like cigarettes he didn’t smoke. The situation escalated, forcing Dave to call the police to remove the intruder, marking it as his worst house hacking experience.

Samantha [04:07]: "I'm not playing that game. I'm so sorry."

Samantha empathizes with Dave’s predicament, sharing that her immediate response in a similar situation would be to lock herself in and let authorities handle the intruder without personal interaction.

Dave’s Neighborly Nightmare [14:58 - 19:25]

Later, Dave shares a coincidental story about former tenants from a unit above his who frequented the property for parties. Despite maintaining a friendly relationship, issues arose when the tenants failed to clean upon moving out, leading to a confrontation over an $800 cleaning fee. Years later, in a twist of fate, one of these tenants appeared at Dave’s party in Amsterdam to apologize, showcasing the unpredictable and sometimes serendipitous nature of landlord-tenant relationships.

Dave [19:05]: "Just bluff that the cops are on their way. And you can stop parties that way."

This story underscores the importance of maintaining good relationships while also setting firm boundaries to manage tenant behavior effectively.

Lessons from Challenging Situations

Samantha’s Identity Theft Tenant Saga [05:33 - 11:48]

Samantha recounts a complex situation involving a tenant who had stolen another person's identity to secure the lease. Initially appearing as a respectful paralegal named Samantha Suarez, the tenant exhibited suspicious behavior with rent payments that repeatedly failed due to fraudulent ACH transactions. It wasn’t until a real Samantha Suarez contacted them that the deceit was uncovered.

Samantha [08:50]: "I think she prevented something and this was just like a good test for me."

This incident highlights the critical need for thorough verification processes and the vigilance required in tenant screening to prevent identity fraud and protect property management interests.

Samantha’s Troubling Tenant Experience [19:38 - 27:21]

Another significant story from Samantha involves renting to a single father who brought multiple children into a two-bedroom apartment. Despite initial positive signs, ongoing issues with noise, smells, and eventually non-payment of rent led to an eviction process that revealed deplorable living conditions, including unsanitary practices left by the tenants.

Samantha [25:02]: "It's disgusting and terrible."

This experience taught Samantha the importance of strict adherence to tenant agreements and the necessity of not overlooking red flags, even when personal empathy for tenants’ situations is involved.

Uplifting Tenant Success

Samantha’s Felon Tenant Redemption [35:31 - 39:05]

Balancing the earlier tough stories, Samantha shares an inspiring narrative about renting to a convicted felon who had served 12 years in federal prison for a non-violent drug offense. Frustrated by continuous application rejections and drained financially by application fees, the tenant finally found hope through Samantha and her wife, who decided to give him a chance.

Samantha [36:04]: "He was just genuinely saddened that people weren't having any faith in him."

This tenant has since thrived, maintaining timely rent payments and even forming a supportive community within the property by assisting an elderly neighbor. His success story exemplifies the positive impact landlords can have by extending trust and opportunities to those striving for a fresh start.

Dave [38:53]: "Sometimes good business is just being reasonable with your tenants."

Host’s Personal Story of Tenant Kindness

Dave’s DIY Disaster Rescued by Tenants [31:45 - 35:31]

Returning to Dave, he shares a personal anecdote from his early days as a landlord. Attempting to save money, Dave undertook the construction of a faulty staircase himself, leading to several days of unsuccessful labor. Miraculously, one of his tenants’ fathers noticed his struggles and built the staircase for him, showcasing the unexpected kindness and community spirit that can flourish between landlords and tenants.

Dave [34:50]: "He was just like, 'You're a young guy trying your best...'"

This story not only highlights the potential for positive interactions but also underscores the importance of building strong, respectful relationships with tenants.

Closing Thoughts and Takeaways

Throughout the episode, Dave and Samantha emphasize the dual nature of real estate investing as both a business and a people-centric endeavor. They discuss the delicate balance between making sound financial decisions and exhibiting empathy towards tenants, noting that long-term success often stems from treating tenants with respect and understanding.

Dave [40:44]: "Good business is just being reasonable with your tenants."

Samantha adds that while personal connections can enhance landlord-tenant relationships, maintaining professional boundaries and diligent screening processes are essential to mitigate risks and ensure property integrity.

Samantha [26:13]: "We need to be more diligent about making sure and following up to see who's actually living there."

Conclusion

This episode of the BiggerPockets Real Estate Podcast serves as a compelling reminder of the unpredictable yet rewarding nature of managing rental properties. Through a series of vivid tenant stories, Dave, Henry, and Samantha provide valuable insights into the challenges and triumphs faced by landlords, offering listeners both cautionary tales and inspiring success stories. Whether dealing with fraudulent activities or witnessing genuine acts of kindness, the episode underscores the importance of vigilance, empathy, and integrity in the realm of real estate investing.

Notable Quotes:

• Dave [02:13]: "It is very not cool."
• Samantha [04:07]: "I'm not playing that game. I'm so sorry."
• Dave [19:05]: "Just bluff that the cops are on their way. And you can stop parties that way."
• Samantha [08:50]: "I think she prevented something and this was just like a good test for me."
• Samantha [25:02]: "It's disgusting and terrible."
• Samantha [36:04]: "He was just genuinely saddened that people weren't having any faith in him."
• Dave [34:50]: "He was just like, 'You're a young guy trying your best...'"
• Dave [40:44]: "Good business is just being reasonable with your tenants."
• Samantha [26:13]: "We need to be more diligent about making sure and following up to see who's actually living there."

This summary encapsulates the essence of the episode, providing a comprehensive overview of the tenant stories shared, the lessons learned, and the emotional journeys experienced by the hosts and guests. Whether you're a seasoned landlord or new to real estate investing, these narratives offer valuable perspectives on managing tenant relationships effectively.